Marketplace Facilitators and Marketplace Sellers


For more information on Marketplace Facilitators (AB445 of the 2019 Legislative Session) please visit our FAQs page.

    Marketplace

    A Marketplace is any physical or electronic presence, including but not limited to a store, booth, Internet website, catalog, television or radio broadcast, or a dedicated sales software application, where a Marketplace seller sells or offers for sale, tangible personal property.

      Marketplace Facilitators

       “Marketplace Facilitator” means a person, including any affiliate of the person, whodirectly or indirectly, does one or more of the following to facilitate a retail sale:

      (1) Lists, makes available, or advertises tangible personal property for sale by a Marketplace Seller in a Marketplace owned, operated, or controlled by the person;

      (2) Facilitates the sale of a Marketplace Seller’s product through a Marketplace by transmitting or otherwise communicating an offer or acceptance of a retail sale of tangible personal property between a Marketplace Seller and a purchaser in a forum including a shop, store, booth, catalog, internet site or similar forum;

      (3) Owns, rents, licenses, makes available, or operates any electronic or physical infrastructure or any property, process, method, copyright, trademark or patent that connects Marketplace Sellers to purchasers for the purpose of making retail sales of tangible personal property;

      (4) Provides a Marketplace for making retail sales of tangible personal property, or otherwise facilitates retail sales of tangible personal property, regardless of ownership or control of the tangible personal property that is the subject of the retail sale;

      (5) Provides software development or research and development activities related to any activity described in this subsection, if such software development or research and development activities are directly related to the physical or electronic Marketplace provided by a Marketplace Provider;

      (6) Provides or offers fulfillment or storage services for a Marketplace Seller;

      (7) Sets prices for the sale of tangible personal property by a Marketplace Seller;

      (8) Provides or offers customer service to a Marketplace Seller or the customers of a Marketplace Seller, or accepts or assists with taking orders, returns or exchanges of tangible personal property sold by a Marketplace Seller; or

      (9) Brands or otherwise identifies sales as those of the Marketplace Facilitator; and

      (b) Directly or indirectly, does one or more of the following to facilitate a retail sale:

      (1) Collects the sales price or purchase price of a retail sale of tangible personal property;

      (2) Provides payment processing services for a retail sale of tangible personal property;

      (3) Charges, collects or otherwise receives selling fees, listing fees, referral fees, closing fees, fees for inserting or making available tangible personal property on a Marketplace or other consideration from the facilitation of a retail sale of tangible personal property, regardless of ownership or control of the tangible personal property that is the subject of the retail sale;

      (4) Through terms and conditions, agreements or arrangements with a third party, collects payment in connection with a retail sale of tangible personal property from a purchaser and transmits that payment to the Marketplace Seller, regardless of whether the person collecting and transmitting such payment receives compensation or other consideration in exchange for the service; or

      (5) Provides a virtual currency that purchasers are allowed or required to use to purchase tangible personal property.

       **Marketplace Facilitators include, but are not limited to, consignment stores, auctions, food delivery services such as “Uber Eats” and online Marketplaces.

      The Marketplace Facilitator must register with the Department if they meet the following criteria in the previous or current calendar year.

      (1) had cumulative gross receipts from Nevada retail sales made to customers in this State, on its own behalf or on behalf of a seller, which exceeded $100,000; or

      (2) made or facilitated 200 or more separate Nevada retail sales transactions, on its own behalf or on behalf of a seller.

        Marketplace Sellers

        A person who has an agreement with a Marketplace Facilitator and makes retail sales of tangible merchandise through a Marketplace owned, operated, or controlled by a Marketplace Facilitator.  

         

          Registration Requirements

          A Marketplace Facilitator, Marketplace Seller or Remote Seller’s combined Nevada retail sales are used to determine if the sales threshold is met through all sources, to include non-Marketplace (direct retail sales) and Marketplace Nevada retail sales. Effective October 1, 2019, the Marketplace Facilitator, Marketplace Seller and/or the Remote Seller (no physical presence), must register to collect and remit sales tax on all of its facilitated Nevada retail sales and its direct Nevada retail sales when its total of all such sales exceeds $100,000 or 200 separate transactions in the preceding or current calendar year. 

          The sales threshold does not apply to a Retailer, Remote Seller, Marketplace Seller or Marketplace Facilitator that has a physical presence in this State. All Retailers with a physical presence in this State must register, collect, remit and report all sales tax even if the Nevada retail sales threshold is not met.A retailer with physical presence in this state who makes both Marketplace and non-Marketplace retail sales must remit and report Nevada sales tax on any taxable sales on which the Marketplace Facilitator does not collect Nevada sales tax.

          **Please note: If the seller that has no nexus, makes direct sales into Nevada in addition to those made through the Marketplace and meets the Nevada retail sales threshold, they must register, collect and remit the Nevada sales tax on the direct sales made into Nevada.  

           

            Sales Through a Marketplace Facilitator

            If ALL Marketplace Facilitators used by the Marketplace Seller are registered with Nevada to collect Nevada sales tax, the Marketplace Seller does not have to collect the Nevada sales tax but is still required to be registered with Nevada pursuant to NRS 372.125 and NRS 374.130 if they make non-marketplace sales into Nevada and meet the Nevada retail sales threshold. 

            The Marketplace Facilitator must issue a certificate prescribed by the Departments to all Marketplace Sellers stating that the Marketplace Facilitator will register, collect, remit and report all Nevada sales tax. They will also be responsible for being audited on such facilitated Nevada sales. If you have no nexus, no direct sales and all sales are made through a registered Marketplace Facilitator, you do not need to register with the Department for a Sales/Use Tax permit. The Facilitator will collect and remit the tax.

            A Marketplace Facilitator must file a separate Nevada sales tax return under a subaccount with a separate location code to report all the sales made by the Marketplace Sellers and facilitated by the Marketplace Facilitator.

                  EXAMPLE: Seller X has $200,000 in gross receipts from Nevada retail sales. Seller X makes all its Nevada sales through a Marketplace Facilitator that collects Nevada sales tax on the retail sales. Seller X does not need to register for a Nevada sales tax permit or file a Nevada sales tax return.  The Marketplace Facilitator will collect, remit and report the Nevada sales tax on the Marketplace Facilitator’s Nevada sales tax return. 

            Note: Sales tax is calculated based on the location where the sale is sourced or delivered. Use the Department’s Sales Tax Map under the Publications tab to calculate the correct rate. To determine whether a product is subject to Nevada sales tax, use the Taxability Matrix Under the Streamlined Sales and Use Tax tab.

              Opt-Out Provisions

              A Marketplace Facilitator and Marketplace Seller can enter into a written agreement whereby the Marketplace Seller assumes responsibility for the collection and remittance of the Nevada sales tax for all Nevada retail sales made by the Marketplace Seller through the Marketplace Facilitator if all of the following conditions are met:  

                   a) The Marketplace Facilitator enters into this agreement with ALL Marketplace Sellers that the Marketplace Facilitator makes or facilitates Nevada retail sales transactions on behalf of those Marketplace Sellers; 

                   b) All Marketplace Sellers are currently registered with Nevada and hold a Nevada sales tax permit;

                   c) The agreement specifies that the Marketplace Seller is responsible for collecting, remitting and reporting the Nevada sales tax on all Nevada retail sales made through the Marketplace Facilitator;

                   d) The Marketplace Facilitator maintains notification on its website that Nevada sales tax is being collected, remitted and reported by the Marketplace Seller; and

                   e) The Marketplace Facilitator provides the agreement to the Department prior to facilitating Nevada retail sales on behalf of the Marketplace Seller.

              Upon request of the Department, a Marketplace Facilitator shall provide to the Department, a report containing the name of each Marketplace Seller with whom the Marketplace Facilitator has entered into an agreement pursuant to this section and such other information as the Department determines is necessary to ensure that each Marketplace Seller with whom the Marketplace Facilitator has entered into an agreement pursuant to this section, has obtained a permit pursuant to NRS 372.125 or registered pursuant to NRS 360B.200 and are filing their own returns.

                Liability Relief for Marketplace Facilitators

                Except as otherwise provided in AB 445 Section 6 subsection 2 and 3, if a Marketplace Facilitator collects, remits and reports the Nevada sales tax on behalf of the Marketplace Seller and any underpayment of Nevada sales tax has been found after an audit has been conducted, the Marketplace Facilitator will ultimately be held liable as provided in AB 445 section 6 subsection 1 unless:    

                The Marketplace Facilitator provides proof satisfactory to the Department that the Marketplace Facilitator has made a reasonable effort to obtain accurate information from the Marketplace Seller about the Nevada retail sale; and

                The failure to collect, remit and report the correct Nevada sales tax on the retail sale was due to incorrect information provided to the Marketplace Facilitator by the Marketplace Seller.

                If the Marketplace Facilitator is relieved from the liability pursuant to subsection 1, theMarketplace Seller is liable for the underpayment.

                 

                QUESTIONS?

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